Which of the following best defines market segmentation
A) The identification of customers with common characteristics and needs
B) The identification of customers with heterogeneous characteristics and needs
C) The grouping of customers with different characteristics
D) The process of reducing large markets into smaller markets without regard to customer characteristics
E) The process of identifying the various markets that comprise an industry without regard to customer characteristics

Question

Quizplus · Accepted Answer

Market segmentation is the process of dividing a larger market into smaller groups of consumers with similar characteristics and needs. Option A best defines market segmentation as it refers to the identification of customers with common characteristics and needs, which helps businesses to target their marketing efforts towards the specific needs and preferences of each segment.

Which of the Following Best Defines Market Segmentation